Although China already has a number of bilateral trade agreements, this is the first time it has signed a regional multilateral trade pact. The new free trade bloc will be larger than the agreement between the United States, Mexico and Canada and the European Union. Many Member States have already concluded free trade agreements, but there are restrictions. While the agreement will open up more opportunities for Vietnamese exporters, it would not only promise a breakthrough in the export of Vietnamese goods to Japan. Japan is a demanding market, with many strict rules of origin, food security and hygiene, which pose enormous challenges for Vietnamese exporters (Citinews, 2015). To date, positive changes in tariffs have not yet resulted in changes in trade that meet the expectations of both parties; Vietnamese companies have not made full use of AJEPA. The reason is that they always face obstacles when it comes to getting closer to the Japanese market. Huynh Khanh Hiep, deputy director of the Ho Chi Minh Ministry of Industry and Trade, said that since May 2006, Japan has implemented its revised food sanitation law, which has strengthened regulations and supplemented some of the unauthorized chemical residues in food production. www.mofa.go.jp/region/asia-paci/vietnam/epa0812/annex1.pdf the Japanese economy might not function normally after the war without foreign trade. Japan is limited by natural resources, so Japan has to import most of the raw materials and fuels from abroad. The uncertainty and fragility of the Japanese economy due to oil and energy imports into Japan was even greater, as Japan focused on a number of important areas such as the Middle East, the region that provided 76% of Japan`s total oil demand. South-East Asia provided Japan with 16.5% of the oil needs, 30% copper, 35% bauxite, 12% nickel, 37% wood, 100% higher natural rubber and tin. Therefore, any changes that are taking place in this area could be vulnerable to the Japanese economy.
“Ratification is likely to be difficult in national parliaments, both because of anti-commercial and anti-Chinese sentiment,” he added. www.mofa.go.jp/mofaj/gaiko/fta/j_asean/vietnam/pdfs/fuzoku01.pdf longer term, Li called the agreement a “victory for multilateralism and free trade.” Chinese President Xi Opens to Other Trade and Import Agreements A product made in Indonesia, which contains, for example, Australian parts, could expect tariffs elsewhere in the Asean Free Trade Area. Bello, D.C., Barksdale Jr., H.C (2013). Exports to industrial fairs. Industrial Marketing Management, 15(3), 197-206. Under the RCEP, the parts of all Member States would be treated in the same way, which could encourage companies in RCEP countries to look for suppliers in the commercial region.